After the recent rapid drop in 2nd hand values, I’m very interested on people who have taken new RRS on JLR pcp’s trade in offers at 3 & 4 years old against the mgfv on your pcp contract?

A family friend with a 3year old, low mileage, immaculate Hse dynamic, trading in against another new RRS virtually the same spec, was only offered the mgfv figure, they sank £25k into the last car expecting to get at least 5-10k back to go into this new one, they are now considering other manufacturers as they are astonished there is nothing left in the car.

I think my ab will be the same at the end of year 4.

How is everyone else getting on that’s in the same boat?

Love the car but can’t justify the cost of ownership do I think this will be my last one, certainly last new one anyway.

My understanding all that a larger deposit does is reduce the monthly payment.
I've just p/x ed my last RRS against a P400 HSE, it was 2.5 years old and I got £1.4k over the GFV. I didn't expect to get any more than this and assumes that at 3 years old there would be no equity in the car. I did also get a pretty good discount on the new car.
Tim Tim
RRS sold and replaced with a Skoda Kodiaq after appalling RR Dealer experience and LR inability to supply new cars in any sort of reasonable time frame..

Only lowers the payments I’ve been caught out thinking the same in the past if it’s a 4 year pcp they are best going to full term and handing the car back if there is no equity in it now.

If I spec my car today Land Rover has lowered the GFV by over 10k so they could be worried about the future demand for
Used stock in the economic uncertainty we are facing.

Are there scenarios where PCP would be better than paying cash (if you happen to have it)?

Assuming not, then how about compared to regular HP? Is PCP better because:
1. Lower monthly payments
2. Lower deposit (is it?)
3. You are protected from exceptional deprectiation if the arse drops out of the market?

Anything else? The downside seems to me to be higher total interest costs because you are not paying down the loan so fast, so the overall cost (total cost of ownership) is generally higher. Would you call the additional interest a 'premium' for protection against exceptional depreciation? If you buy PCP do you feel more compelled to buy a new car at the end of the term vs walking away of buying the thing out right?

It just feels there is more in it for the manufacturer than the consumer! L405 P400e Autobiography (MY2020)... Silicon Silver / Espresso
RRS TDV6 HSE Lux (MY2011)... Nara Bronze / Arabica - now gone!

A bigger deposit does what you request it to do , you can either lower the payments or the final purchase fee . I had a Q7 with a Bubble of only 2k , due to PCP coming with free services and hp didn't . My current car an 18plate RRS has a 15k bubble as I like to keep plenty of capital in my cars due to having my own business with volatile markets , that way if in 3yrs I don't have as much income I am not left without a car .My plan is to chip away each year at the bubble in December when my business has surplus cash .
The downside to doing it my way is as said above in that I am the one exposed to the majority of depreciation should the market collapse , a risk I'm willing to take to have the comfort of being able to keep my car should my income fall . MY 18 RRS HSE Dynamic ,MY 16 RRS Autobiography now gone & MY 2005 Discovery 3 HSE that I will be buried in !

Point 3 is a good one, I bought my last diesel RRS this way to protect my self from a market crash.
The other point to consider is whether you can use your cash to earn more than the interest charges on the PCP. This could be in a business or invested in the stock market for example.

Tim Tim
RRS sold and replaced with a Skoda Kodiaq after appalling RR Dealer experience and LR inability to supply new cars in any sort of reasonable time frame..

I look at PCP more of a easier to get out of lease with lower payments.

If I do want ownership I would only do HP on the car.

Also PCP the interest is factored in over the entire vehicle price and not just the loan price which almost doubles the interest you're paying.

So with PCP just get the deposit and monthly payments where you want them and then run the car as a lease - if you get something back at the end, bonus! Non JLR Vehicle